What is penalty for RCM not charged under GST ?

[nagendra v]

Sir/Madam,

I want to know the penalty or causes for ignoring/omitting GST taxes under Reverse Charge mechanism

please help me with this issue

Thank you

[KASTURI SETHI]

Read Section 122 (2) (a) & (b) of CGST Act, 2017. It is minimum 10,000/- or equal to the amount of tax evaded, whichever is higher.

[YAGAY and SUN]

Please pay it along with interest.

[Ganeshan Kalyani]

It is better pay due tax with interest.

AI Summary

Reverse Charge Mechanism non-compliance attracts penalty under Section 122 and liability for interest and tax demand.
Liability for omitted tax under the Reverse Charge Mechanism is subject to penalty under Section 122(2)(a) & (b), which prescribes a statutory minimum or an amount equal to the tax evaded, and non-payment also attracts interest; regularising by paying tax with interest is advised.